Pro Logis Park 20/35
Industrial Park
Rep Photo
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
$1,179,000 / 6.15% CAP
 New 17-Year Absolute NNN Lease w/ 4, 5-Year Options | 1.0% Annual Rental Increases
 Lessee: K-Mac Enterprises, Inc.: One of the Largest Largest Taco Bell Franchisees | 2011 Revenue: $215 Million+
 Franchisee Founded in 1964 | Headquarters in Fort Smith, AR | 167 Taco Bell Locations
 At Intersection of Interstate 20 (64,601 Cars / Day) & Lancaster Rd. (32,472 Cars / Day)
 Retailers in Trade Area Include Texaco, Chevron, Conoco, Exxon, Denny’s McDonald’s Subway, Pilot, & Wendy’s
EXCLUSIVE LISTING AGENT:
 1.4 Miles From Cedar Valley College (6,222 Students) | 1.8 Miles From Lancaster High School (1,713 Students)
Joe Caputo | Bob Moorhead
 Transportation & Logistics Hub: Walmart, Home Depot, & McGraw-Hill Distribution Centers Located in Trade Area
214.522.7200
 Kohl’s To Build 951,000 SF Distribution Center 3 Miles from Subject Property | 400 New Jobs Anticipated
[email protected] | [email protected]
 Union Pacific Railroad Intermodal Terminal Nearby: 4,000 Staging Areas & Capacity for 76 Railcars
CASH
AMERIC
TACO
BELL
CORPORATION
3101
N SHARONRd.,
AMITY
RD, TX
CHARLTT, NC
8407
S. Lancaster
Dallas,
TABLE OF CONTENTS
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS - DISCLAIMER
PAGE 3:
INVESTMENT OVERVIEW
PAGE 4:
AERIAL PHOTO
PAGE 5:
LOCATION OVERVIEW
PAGE 6-7:
LOCATION MAPS
PAGE 8:
DEMOGRAPHICS
SUBJECT PROPERTY
CONFIDENTIAL MEMORANDUM & DISCLAIMER
EXP Realty Advisors, Inc. (“Agent”) has been engaged as the exclusive agent for the sale of the property located at 8407 S. Lancaster Rd., Dallas, TX by the owner of the Property (“Seller”). The Property is being offered for
sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly
confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective
investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or
implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions
contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon
the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves
the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is
made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of
Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a
binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived. By taking
possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials
or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.
TABLE OF CONTENTS – DISCLAIMER | 2
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
PRICE:
$1,179,000
CAP RATE:
6.15%
NOI:
$72,506
BUILDING AREA:
3,070 +/- Square Feet
LAND AREA:
0.79 +/- Acres
YEAR BUILT:
2004
OCCUPANCY:
100% | Single Tenant
OWNERSHIP:
Fee Simple Interest
ADDRESS:
8407 S. Lancaster Rd., Dallas, TX
K-MAC ENTERPRISES, INC. / TACO BELL
Franchisee Founded in 1964 | HQ in Fort Smith, AR | Owned by Brentwood Associates
167 Taco Bell Locations | 2011 Revenue : $215 Million+
LEASE OVERVIEW
Tenant:
K-Mac Enterprises, Inc., a Missouri corporation, dba Taco Bell
Leasable Area:
Approximately 3,070 +/- Square Feet on Approximately 0.79 +/- Acres
Initial Lease Term:
17-Years
Options to Renew:
4, 5-Year Options to Renew
Rent Commencement Date: December 2011
Lease Expiration (Primary Term):
December 2028
Lease Type: Absolute NNN | No Landlord Responsibility
Rent Increases: 1.0% Annually During Primary Term and Option Periods
Current Annual Rent: $72,506
Franchisee: K-Mac is a leading quick-service restaurant franchisee founded in 1964 and
headquartered in Fort Smith, Arkansas. Olympus Partners, a private-equity firm in
Stamford, Connecticut, acquired majority control of K-Mac, then known as K-Mac
Enterprises, Inc., in late 2004, when it had 144 stores. From late 2004 to 2011 K-Mac
Enterprises opened 32 more restaurants and began doing business in several new states
giving K-Mac Enterprises a total of 176 restaurants. In March 2011 Brentwood
Associates, a private equity firm based in Los Angeles, CA acquired K-Mac Holdings
Corporation from Olympus Partners.
K-Mac is one of the largest Taco Bell franchisees in the country, operating 167 Taco Bell
restaurants. The company also operates KFC Restaurants and Golden Corral restaurants
for a total of 190 stores. The company has a regional concentration in the South Central
region of the U.S., with restaurants in Arkansas, Indiana, Missouri, Oklahoma,
Tennessee, and Texas. In 2009 and 2010 the company had over $208 million and $215
million in revenue respectively.
Taco Bell: Taco Bell is an American chain of fast-food restaurants based in Irvine,
California. A subsidiary of Yum! Brands, Inc., which serves American-adapted Mexican
food. Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a
variety of "Value Menu" items. Taco Bell serves more than 2 billion consumers each year
in more than 5,800 restaurants in the U.S., more than 80 percent of which are owned
and operated by independent franchisees. Taco Bell is also present in the Dominican
Republic, Puerto Rico, Guam, Aruba, Costa Rica, Chile, Colombia, Ecuador, Panama and
on AAFES military bases in Japan, Germany and Iraq. Taco Bell was founded by Glen Bell
who first opened a hot dog stand called Bell’s Drive-In in San Bernardino, California in
1946 when he was 23 years old. Six years later, he sold the stand and opened a new one
two years later, this time selling tacos under the name of Taco-Tia. Over the next few
years Bell owned and operated a number of restaurants in southern California including
four called El Taco. Bell sold the El Tacos to his partner and built the first Taco Bell in
Downey in 1962. In 1962, he sold Taco-Tia. Kermit Becky, a former Los Angeles police
officer, bought the first Taco Bell franchise from Glen Bell in 1964 (with a little
encouragement from another L.A. police officer Joseph Charles Zeller), and located it in
Torrance. The company grew rapidly, and by 1967, the 100th restaurant opened at 400
South Brookhurst in Anaheim. In 1970, Taco Bell went public with 325 restaurants. In
1978, PepsiCo purchased Taco Bell from Glen Bell.
INVESTMENT OVERVIEW | 3
CASH
AMERICA
TACO
BELL
CORPORATION
3101
N SHARONRd.,
AMITY
RD, TX
CHARLOTTE, NC
8407
S. Lancaster
Dallas,
Interstate 20 (64,601 Cars / Day)
Interstate 35 (34,845 Cars / Day)
South Pointe
Corporate Center
Industrial Park
Pro Logis Park 20/35
Industrial Park
Lancaster
High School
TRADE AREA AERIAL PHOTO | 4
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
IMMEDIATE TRADE AREA
Taco Bell is strategically located at the corner of Interstate 20 (64,601 Cars / Day)
and Lancaster Rd. (32,472 Cars / Day). This site is also near the midpoint between
the Interstate 20 interchanges with Interstates 35 (2.2 miles) and Interstate 45
(3.4 miles). Retailers located at the Lancaster Rd. and Interstate 20 intersection
include Texaco, Chevron, Pilot, Subway, Popeyes, McDonald’s, and Whataburger.
Additional retailers in the immediate trade area include Conoco, Exxon, Shell,
Denny’s, Jack in the Box. A Days Inn hotel is also located on the opposite side of
Lancaster Road from Taco Bell.
The subject property is adjacent to the Lancaster city limits which was a finalist
for the All-America city award in 2005 and 2006. The site is 1.4 miles north of
Cedar Valley College (6,222 students) and 1.8 miles north of Lancaster High
School (1,713 students). The area around the subject property is a major hub for
the transportation industry. The site is just east of ProLogis Park 20 / 35, a
656,106 SF distribution and warehousing facility. Union Pacific Railroad opened a
$100 million, 360 acre intermodal terminal next to this interchange. This
terminal has more than 4,000 staging areas for trailers and containers as well as
the capacity to handle 76 railcars. In January of 2012 Kohl’s announced plans to
construct a 951,000 SF distribution center approximately 3 miles southeast of the
subject property This installation is anticipated to create 400 jobs over the next 3
years. Additional companies that have distribution centers in the trade area
include Walmart, Home Depot, and McGraw-Hill.
DALLAS, TX
Dallas is the third-largest city in the state of Texas and the ninth-largest in the
United States with a population of 1,197,816. The city's prominence arose from
its historical importance as a center for the oil and cotton industries, and its
position along numerous railroad lines. With the advent of the interstate highway
system in the 1950's and 1960's, Dallas became an east/west and north/south
focal point of the interstate system with the convergence of four major interstate
highways in the city, along with a fifth interstate loop around the city. Dallas
developed a strong industrial and financial sector, and a major inland port, due
largely to the presence of Dallas/Fort Worth International Airport, one of the
largest and busiest airports in the world. Dallas has more shopping centers per
capita than any other city in the United States and is also is home to two super
regional center malls, the Dallas Galleria and NorthPark Center, which is the 2nd
largest mall in Texas.
In the latest rankings released on September 14, 2011, Dallas was rated as an
Alpha- world city by the Globalization and World Cities Study Group & Network. It
is the only city in the South Central and Southwest regions to achieve that status.
Dallas is also ranked 14th in world rankings of GDP by the Organization for
Economic Co-operation and Development.
DALLAS-FORT WORTH METROPLEX
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area encompasses 12
counties within the U.S. state of Texas. It is the economic and cultural hub of the
region commonly called North Texas or North Central Texas and is the largest
land-locked metropolitan area in the United States.
The 2010 U.S. Census has the Dallas-Fort Worth Metroplex at 6,371,773. During
the 12-month period from July 2008 to July 2009, the Dallas-Fort Worth-Arlington
metropolitan area gained 146,530 new residents, more than any other
metropolitan area in the United States. The area's population has grown by about
one million since the last census was administered in 2000. The Dallas–Fort
Worth–Arlington MSA is, by population, the largest metropolitan area in Texas,
the largest in the South, the fourth-largest in the United States, and the tenth
largest in the Americas. The metropolitan area has the sixth largest gross
metropolitan product(GMP) in the United States, and approximately tenth largest
by GMP in the world.
Dallas and its suburbs have one of the highest concentrations of corporate
headquarters in the United States. As such, one of the largest industries in the
Metroplex is conducting business. The Metroplex also contains the largest
Information Technology industry base in the state (often referred to as Silicon
Prairie or the Telecom Corridor), due to the large number of corporate IT projects
and the presence of numerous electronics, computing and telecommunication
firms such as Texas Instruments, HP Enterprises Services, Dell Services, i2, AT&T,
Ericsson, CA and Verizon in and around Dallas. On the other end of the business
spectrum, and on the other side of the Metroplex, the Texas farming and
ranching industry is based in Fort Worth. Fort Worth also sits on top of the
Barnett Shale, one of the most productive natural gas shales in the United States.
Drilling and Exploration of this formation has led to a boom in the energy sector
in the Metroplex. According to the Dallas Business Journal's 2006 Book of Lists,
American Airlines is the largest employer in the Metroplex. Several major defense
manufacturers, including Lockheed Martin, Bell Helicopter Textron, and
Raytheon, maintain significant operations in the Metroplex. ExxonMobil, the #1
corporation on the Fortune 500 listings, is headquartered in Irving, Texas.
LOCATION OVERVIEW | 5
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
LOCATION MAP | 6
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
LOCATION MAP | 7
TACO BELL CORPORATION
8407 S. Lancaster Rd., Dallas, TX
DEMOGRAPHIC SNAPSHOT
Radius
1 Mile
3 Mile
5 Mile
2016 Projection
4,323
54,592
169,425
2011 Estimate
3,997
53,580
164,865
2010 Census
3,859
53,462
163,668
Growth 2011-2016
8.10%
1.90%
2.80%
Growth 2010-2011
3.60%
0.20%
0.70%
2016 Projection
1,469
18,000
56,948
2011 Estimate
1,359
17,710
55,478
2010 Census
1,314
17,699
55,147
Growth 2011-2016
8.10%
1.60%
2.60%
Growth 2010-2011
3.40%
0.10%
0.60%
944
11,254
32,200
Population:
2011 Households:
Owner Occupied
415
6,457
23,278
2011 Avg Household Income
Renter Occupied
$46,898
$45,834
$48,632
2011 Med Household Income
$34,251
$34,733
$36,458
2011 Per Capita Income
$15,561
$15,456
$17,278
Income Less than $15,000
274
3,873
11,509
Income $15,000 - $24,999
214
2,542
7,633
Income $25,000 - $34,999
203
2,490
7,319
Income $35,000 - $49,999
240
3,223
9,440
Income $50,000 - $74,999
193
2,710
9,431
Income $75,000 - $99,999
Dallas Skyline
2011 Households by Household Inc:
125
1,540
4,868
Income $100,000 - $149,999
72
938
3,721
Income $150,000 - $199,999
20
165
901
Income $200,000+
18
229
656
Union Pacific Intermodal Terminal
DEMOGRAPHICS | 8